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Ten years ago, Cary Company issued $1,500,000 of 7 percent, 10-year bonds at a price of 95. On the maturity date of January 2, after making the final interest payment and recording the related entry, Cary retired the bonds. Complete the necessary journal entry by selecting the account names and dollar amounts from the drop-down menus.

Respuesta :

Answer:

Consider the following journal entry

Explanation:

Journal entry

Date account and explanation debit        credit

Jan 2 Bonds payable                 1.500.000  

Cash                                                                 1.500.000

              (To record redemption of bonds)  

Note : All discount on bonds payable would be amortized on maturity date so carrying value is equal to face value of bonds